How to Compare Vehicle Insurance Companies

As a car owner you want to take as many precautions as possible to protect it. If you’ve just bought a new car and you are financing it through the bank or another financial institution you will be required to get comprehensive car insurance.  

What types of vehicle insurance can you get?

Comprehensive Cover:

This is the most expensive type of cover. You are able to get cover for theft, hijacking, accidents, fire and natural disasters, like hail and floods. It also covers you against claims by third parties where you are responsible for damage to their vehicle.

Third Party, Fire and Theft Insurance:

This type of cover does not provide cover for accidental damage to your vehicle. You get cover for theft, hijacking or fire.

Third Party:

This is the cheapest form of insurance. It provides cover for any damage you may cause to someone else’s vehicle.

Insurance companies in South Africa are required to be registered financial services providers. They are required to make sure that their quotes and policies are clearly worded so that consumers fully understand their contents.

What do you need to look for when comparing insurance companies?

Understand that cost isn’t everything

You need to look beyond the cost of the insurance and you need to make sure that the insurance suits your specific needs.

Assess the company’s Claims processing

You’ll want to find an insurance company that has an efficient claims process. You’ll need to look for 24 hour telephone and online reporting and friendly consultants.

Consider the coverage options offered

The type of cover is very important. You need to assess the different vehicle insurance policies to make sure that they meet your needs.

Consider the financial strength rating

The company you choose should be able to afford to pay out in the event of a claim.

Find out about customer recommendations

Compare average premium rates

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